Philadelphia: 77-year-old payday lender gets 14 years in prison for schemehttps://indianexpress.com/article/world/philadelphia-77-year-old-payday-lender-gets-14-years-in-prison-for-scheme-5249586/

Philadelphia: 77-year-old payday lender gets 14 years in prison for scheme

Charles Hallinan was also ordered Friday to pay a $2.5 million fine for the scheme to collect hundreds of millions of dollars in unlawful debt from high-interest loans.

Prosecutors say the 77-year-old Hallinan charged astronomical interest rates of more than 700 percent on the short-term loans. (Representational)
Prosecutors say the 77-year-old Hallinan charged astronomical interest rates of more than 700 percent on the short-term loans. (Representational)

The head of a multimillion-dollar payday lending enterprise has been sentenced in Philadelphia to 14 years in federal prison for evading state regulations by using Native American tribes and a bank as fronts.

Charles Hallinan was also ordered Friday to pay a $2.5 million fine for the scheme to collect hundreds of millions of dollars in unlawful debt from high-interest loans.

Prosecutors say the 77-year-old Hallinan charged astronomical interest rates of more than 700 percent on the short-term loans.

Authorities say the scheme netted Hallinan’s companies more than $690 million in revenue between 1997 and 2013.

Hallinan was also ordered to pay a forfeiture money judgment about $64 million. He also must forfeit his interest in $1.2 million in funds in 18 bank accounts; two Mercedes-Benz vehicles; one Bentley vehicle; and his Villanova mansion.

Advertising

A message seeking comment from his attorney wasn’t immediately returned Friday.